CHANDLER, Ariz., July 27 -- Amkor Technology, Inc.
(Nasdaq: AMKR) reported second quarter sales of $493 million, up 6%
sequentially and up 30% over the second quarter of 2003. Amkor's second
quarter net income was $10 million, or $0.06 per share, and included after-tax
gains of $14 million, or $0.08 per share, from the sale of 10.1 million shares
of Anam Semiconductor, Inc. common stock and $2.5 million, or $0.01 per share,
on the settlement of litigation with a software provider. In the second
quarter of 2003 Amkor reported a net loss of $51 million, or ($0.31) per
share, which included a charge, with no tax effect, for debt retirement costs
of $31 million, or ($0.19) per share.

"From a strategic perspective, we are midway through a year in which we
have undertaken a series of initiatives designed to position Amkor for
long-term growth," said Kim. "In March we acquired a 354,000 square foot
assembly and test factory in Hsinchu, Taiwan, which provides needed space to
accommodate our growing business in Taiwan. In May we entered into a
collaboration with IBM, which includes the acquisition of IBM's Singapore test
operations and a 950,000 square foot manufacturing complex in Shanghai,
together with a long-term supply agreement.

"Last week we took an important step positioning Amkor in the high growth
markets for flip chip and wafer level packaging by announcing agreements to
acquire North Carolina-based Unitive, Inc. and a majority interest in
Taiwan-based Unitive Semiconductor Technology," said Kim. "These acquisitions
will give Amkor the industry's premier electroplated wafer bumping technology,
together with the capability to provide complete turn-key solutions for flip
chip on 200mm and 300mm wafers that incorporate bump, probe test, assembly and
final test.

"With completion of the above initiatives, the facilities and equipment
that we have added over the past several quarters should provide Amkor with
sufficient production capacity for the foreseeable future. We are currently
running at 73% of capacity, and while we will continue to make selected
capital investments in flip chip and other strategic growth areas, further
increases in assembly capacity will largely depend on customer demand. We
acknowledge that costs associated with our growth initiatives will constrain
profitability and cash flow in the near-term, however we believe that these
strategies will yield the best long-term return for our shareholders," said
Kim.

"During the second quarter we experienced softer than expected demand for
several of our advanced package families which carry higher-than-average gross
margins, said Ken Joyce, Amkor's chief financial officer. "We believe the
softness in demand for our advanced packages was due to absorption of
semiconductor inventory that was built-up in prior periods. Gross margin was
also impacted by continued absorption of higher factory and labor costs
related to our capacity expansion initiatives, particularly in Taiwan, where
we acquired a new factory in March of this year, and in China, where we are in
the process of facilitizing our second 75,000 square foot building.

"Near term, our margins should remain under pressure in connection with
absorption of our new acquisitions and continued under-utilization of lines
supporting advanced packages as the supply chain burns excess inventory," said
Joyce. "We are committed to improving the profitability of our core business
while absorbing the costs associated with our growth initiatives. Our model
has a high degree of operating leverage, and gross margin will be heavily
dependent on business volume and mix. We are working to enhance the product
mix and have selectively raised package prices. We are qualifying lower cost
material vendors and have negotiated lower prices with our existing laminate
substrate vendors."

"Second quarter capital expenditures totaled $124 million, bringing total,
first-half capital expenditures to $295 million," said Joyce. "During the
first quarter of this year, we embarked on a program to increase our
production capacity for several advanced package families that experienced
very strong growth in 2003. Our goal was to get off allocation and ahead of
projected near-term demand for these packages. Now that we are comfortably
ahead of demand, and in light of current business expectations, we are
moderating our capital program for the remainder of this year and are
currently budgeting capital expenditures of $80 million for the second half of
2004. We are targeting to have positive free cash flow in the fourth
quarter."

In April the company sold 10.1 million shares of common stock of Anam
Semiconductor, Inc. for cash proceeds of approximately $50 million. For
financial accounting purposes, this transaction resulted in an after-tax gain
of approximately $14 million, or $0.08 per share. In our first quarter, 2004
earnings release we estimated that this transaction would result in an
after-tax gain of $20 million, or $0.11 per share; however, due to an increase
in the effective tax rate from 11% to 35% for the year 2004, this after-tax
gain has been adjusted as noted above. For income tax purposes, there will be no
tax payment required on this gain. Following this sale, our investment in ASI
has been reduced to 4.6 million shares, or approximately 4%.

Selected operating data for the second quarter of 2004 is included at the
end of this release.

Business outlook

"Looking ahead, there is an increased level of uncertainty in the
semiconductor sector. Our customers have become more cautious about
end-market demand and are exercising tighter control over inventory," said
Bruce Freyman, Amkor's president and chief operating officer. "We have seen a
drop off in our customers' forecasts, and this is impairing our visibility
into the second half of 2004. While the third quarter is typically a seasonal
growth quarter for Amkor, we anticipate that the current inventory correction
will impact this seasonality."

On the basis of current customer forecasts, we have the following
expectations for the third quarter of 2004:

* Sequential revenue flat with the second quarter.
* Gross margin of around 19%.
* Net loss in the range of $0.07 to $0.09 per share.

The tax rate for the full year 2004 is expected to be around 35%. At
June 30, 2004 our company had U.S. net operating losses totaling $420 million
expiring through 2024. Additionally, at June 30, 2004 we had $43 million of
non-U.S. net operating losses available for carryforward, expiring through
2013.

Amkor will conduct a conference call on July 27, 2004 at 5:00 p.m. eastern
time to discuss the results of the second quarter in more detail. The call
can be accessed by dialing 303-205-0033 or by visiting the investor relations
page of our web site: www.amkor.com or CCBN's website,
www.companyboardroom.com. An archive of the webcast can be accessed through
the same links and will be available until our next quarterly earnings
conference call. An audio replay of the call will be available for 48 hours
following the conference call by dialing 303-590-3000 passcode: 11000487#.

Amkor is a leading provider of contract semiconductor assembly and test
services. The company offers semiconductor companies and electronics OEMs a
complete set of microelectronic design and manufacturing services. More
information on Amkor is available from the company's SEC filings and on
Amkor's web site: www.amkor.com.

Forward Looking Statement Disclaimer

This press release contains forward-looking statements within the meaning
of federal securities laws, including, without limitation, statements
regarding the following: the level of assembly and test outsourced by IBM to
Amkor; Amkor's position in the market for flip chip and wafer level packaging;
initiatives designed to position Amkor for long-term growth; the anticipated
acquisitions of Unitive, Inc. and Unitive Semiconductor Technology, including
capabilities for providing complete turn-key solutions for flip chip on 200mm
and 300mm wafers that incorporate bump, probe test, assembly and final test;
expected profitability, revenues, gross margins, net loss and cash flow
(including, without limitation, the statements contained under Business
Outlook); long-term returns for shareholders; facilitizing the 75,000 square
foot building in China; budgeted capital expenditures; optimism of Amkor
customers; and expected tax rates. These forward-looking statements are
subject to a number of risks and uncertainties that could affect future
results and cause actual results and events to differ materially from
historical and expected results, including, but not limited to, the following:
the highly unpredictable nature of the semiconductor industry; volatility of
consumer demand for products incorporating our semiconductor packages;
customer modification of and follow through with respect to forecasts provided
to Amkor; deterioration of the U.S. or other economies; our relationship with
IBM; risks associated with the acquisitions of Unitive, Inc. and Unitive
Semiconductor Technology, including satisfaction of closing conditions and
difficulties with centralizing and integrating the operations of these
entities; worldwide economic effects of terrorist attacks; military conflict
in the Middle East and potential military conflict in Asia, Africa and
elsewhere; competitive pricing and declines in average selling prices; ability
to transition to lower cost vendors; timing and volume of orders relative to
the production capacity; fluctuations in manufacturing yields; competition;
the risk of adverse results of litigation against us; dependence on
international operations and sales; dependence on raw material and equipment
suppliers; changes in tax laws; exchange rate fluctuations; dependence on key
personnel, including employees of Unitive, Inc. and Unitive Semiconductor
Technology; difficulties in managing growth; enforcement of intellectual
property rights; environmental regulations and technological challenges.

Further information on risk factors that could affect the outcome of the
events set forth in these statements and that could affect the company's
operating results and financial condition is detailed in the company's filings
with the Securities and Exchange Commission, including the Report on Form 10-K
for the year ended December 31, 2003 and Form 10-Q for the quarter ended
March 31, 2004.